Alcoholic beverage control: neighborhood-restricted on-sale general licenses

The law creates a limited pathway for eligible eating places to obtain on-sale general alcohol licenses outside the usual county population-based cap. It limits where the licenses may operate and curbs their resale value.

What the law does ​

• Authorizes the Department of Alcoholic Beverage Control to issue up to five new original neighborhood-restricted licenses per year, until 12 are issued.
• Limits licenses to bona fide public eating places in specified 2020 Census tracts in Santa Cruz County, with no more than six licenses concurrently held across each of two listed tract groups.
• Requires applicants to use the existing drawing procedure and cancel any existing on-sale license for the same premises before receiving the new license.
• Bars eligibility for a premises if the applicant holds, has an interest in, or held an interest in an on-sale general license for that premises during the prior 12 months.
• Generally bars transfers to other premises or counties, permits limited same-neighborhood moves and disaster-related moves, and caps sale or transfer prices at the original fee.
• Allows replacement issuance after a license is canceled or revoked and authorizes department rules to enforce the program.

Who it affects ​

• Bona fide public eating places seeking full on-sale alcohol privileges in the specified Santa Cruz County census tracts.
• Current and recent holders of on-sale general licenses for the same premises, who cannot use this license pathway.
• The Department of Alcoholic Beverage Control, which administers the license issuance, transfers, and enforcement.